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Business, 23.04.2020 16:20 shimonypuck28
Suppose that firms in a monopolistically competitive industry are making positive profits in the short run.
Select the correct answers below to describe what will happen in this industry in the long run.
Since profits are greater than zero, firms will enter/exit
As this occurs, demand for each firm will, increase/decrease/stay the same
This will continue until, profits increase/decrease/equal zero
At this point, P=ATC/P=MR/P=MC
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Answers: 1
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